The falling wedge is a bullish continuation pattern that chartists can use to trade or invest in the direction of the underlying trend. I realized that some books show falling wedges as bullish reversal patterns, but I am only interested in bullish continuation patterns and I choose to ignore names that are hitting new lows. This video will show how to assess the overall market condition and focus on ETFs in uptrends or after big impulse advances. We will show how to set correction targets using retracements, how to identify the falling wedge correction and what to look for short-term. This video will also cover the use of the ATR Trailing Stop after the breakout for trade management. There are two successful examples (FCG, REZ), two failed examples (SOCL, GLD) and two current examples (JETS, CHIX). The charts are shown below and these examples start around the 16:10 mark in the video.
You can learn more about ATR Trailing stops in this post,
which includes a video and charting option for everyone.
